Technical Efficiency of Manufacturing Firms in Sub-Saharan Africa

2005 ◽  
pp. 261-302
Keyword(s):  
Technical Efficiency ◽  
Manufacturing Firms ◽  
Sub Saharan Africa ◽  
Sub Saharan

Geographical Orientation of Export in Manufacturing Sector in Sub-Sahara Africa

2015 ◽  
Vol 15 (3) ◽  
pp. 337-351
Author(s):  
Didier Yelognisse Alia
Keyword(s):  
Choice Model ◽  
Manufacturing Sector ◽  
Multinomial Logistic Regression ◽  
Manufacturing Firms ◽  
Sub Saharan Africa ◽  
Explanatory Variables ◽  
Sub Saharan ◽  
Multinomial Choice ◽  
Export Decision ◽  
Export Destination

This paper analyses firm’s decision to export and the geographical orientation of manufacturing firms in selected countries in Sub-Saharan Africa. It uses a dataset collected by Rankin, Söderbom, and Teal (2006) on manufacturing firms in Kenya, Ghana, Tanzania Nigeria and South Africa over the period 1991–2004. The paper develops a multinomial choice model of export destination in which profit maximizing firms choose between selling only on domestic market, export only to another African country, and export only outside Africa or export to both destinations. The model is estimated using a multinomial logistic regression. The paper finds evidence of a positive effect of firm size and firm efficiency on export decision and its geographical orientation, especially for the decision to export outside Africa. There is also significant industry, country and time effects in explaining export orientation. Unlike many previous studies, this paper finds that foreign ownership does not substantially determine firm decision to export. Using non-parametric regression, the paper finds that there is a lot of heterogeneity in the relation between the explanatory variables and the propensity to export or to export to various geographical destinations.

Innovation inputs and efficiency: manufacturing firms in Sub-Saharan Africa

2019 ◽  
Vol 22 (1) ◽  
pp. 59-83 ◽  
Author(s):  
Laura Barasa ◽  
Patrick Vermeulen ◽  
Joris Knoben ◽  
Bethuel Kinyanjui ◽  
Peter Kimuyu
Keyword(s):  
Technical Efficiency ◽  
Absorptive Capacity ◽  
Stochastic Frontier ◽  
Manufacturing Firms ◽  
Sub Saharan Africa ◽  
Foreign Technology ◽  
Firm Level ◽  
Cross Sectional ◽  
Content Type ◽  
Efficiency Effects

Purpose Countries in Africa have a common goal policy of industrialisation that is expected to be driven by investing in innovation that yields efficiency. The purpose of this paper is to investigate the technical efficiency effects arising from innovation inputs including internal R&D, human capital development (HCD), and foreign technology adoption in manufacturing firms in Africa. Design/methodology/approach This study uses cross-sectional firm-level survey data from the 2013 World Bank Enterprise Survey and the linked 2013 Innovation Follow-up Survey. A heteroscedastic half-normal stochastic frontier is used for analysing the technical efficiency effects of innovation inputs of 418 firms. Findings This study reveals that internal R&D, and foreign technology have negative effects on technical efficiency. Notwithstanding, the combination of foreign technology and internal R&D, and foreign technology and HCD reinforce each other’s effects on technical efficiency. Practical implications This study provides evidence that whereas individual innovation inputs may not yield positive efficiency outcomes, the combination of absorptive capacity enhancing inputs comprising internal R&D and HCD with foreign technology is vital for enhancing technical efficiency in manufacturing firms in Africa. This study offers important lessons for managers in manufacturing firms in Africa. Originality/value This study is virtually the first to investigate the relationship between innovation inputs and efficiency in Africa. This study demonstrates that investing in foreign technology in isolation from absorptive capacity enhancing innovation inputs diminishes efficiency. HCD and internal R&D are imperative for building absorptive capacity that enhances efficiency outcomes arising from foreign technology.

scholarly journals Impact of Weather Index Insurance on Groundnut Farmers’ Technical Efficient in Senegal: A Propensity Score Matching Approach

2017 ◽  
Vol 10 (5) ◽  
pp. 131
Author(s):  
Baoubadi Atozou ◽  
Kotchikpa Gabriel Lawin ◽  
Diombare Niang
Keyword(s):  
Propensity Score ◽  
Propensity Score Matching ◽  
Technical Efficiency ◽  
Sub Saharan Africa ◽  
Index Insurance ◽  
Weather Index ◽  
Weather Index Insurance ◽  
Sub Saharan ◽  
The Impact ◽  
Matching Techniques

Irregular and low rainfall levels and drought have become important sources of low agricultural yields and agricultural incomes in sub-Saharan Africa. Weather index insurance is a financial product for climate risk management aimed at securing farmers' incomes. This paper aims to evaluate the impact of a weather index insurance project piloted with groundnut farmers in Senegal in 2015-2016 agricultural season on farmer’s technical efficiency (TE). A Stochastic Production Frontier model was used to estimate the TE scores. A matched group of beneficiaries and control farmers was determined using propensity score matching techniques to mitigate biases stemming from observed variables. The results showed that average TE is consistently higher for control farmers than the beneficiary group. Age, gender and education were found to be significantly related to technical efficiency, while membership in farmers’ association, credit, improved seeds and extension contact were not significantly related to technical efficiency. From a policy perspective, we suggest that weather index insurance programs targeting smallholder farmers in developing countries, and particularly in sub-Saharan Africa, be accompanied with education services, provision of new technologies such as high yield seeds and other best farm management practices and credit to help farmers better adapt to weather shocks and secure their production and income. 

scholarly journals Influence of Human Resource Processes on the Performance of Selected Manufacturing SMEs in Nairobi City County, Kenya

2020 ◽  
Vol 5 (6) ◽  
Author(s):  
Victor K. Kering ◽  
James M. Kilika ◽  
Jane W. Njuguna
Keyword(s):  
Firm Performance ◽  
Human Resource ◽  
Management Practices ◽  
Positive Influence ◽  
Manufacturing Firms ◽  
Small Sample ◽  
Sub Saharan Africa ◽  
Significance Levels ◽  
Sub Saharan ◽  
Geographical Scope

Manufacturing firms in Sub-Saharan Africa are not optimally managed which substantially lowers their productivity. The informal approach to human resource management is attributable to poor management practices with a consequent effect on performance. Due to these challenges, this study sought to examine the effect of human resource processes on the performance of manufacturing SMEs in Nairobi City County, Kenya. The study was explanatory and was based on 136 manufacturing SMEs which was drawn using proportionate stratified sampling. Data collection was achieved through the use of a self–administered questionnaire which was subjected to an inter-consistency test using the Cronbach's coefficient, α ≥ 0.70, which indicated that the research instrument was reliable. Descriptive and inferential statistics (at 0.05 significance levels) was used for the analysis of data. Diagnostic tests were conducted before regression analysis with the data was presented in tabular format. The results show that human resource processes cumulatively explain 23% of the variations in firm performance, therefore, the study concludes that the human resource processes have a positive influence on firm performance. The study recommends that manufacturing firms should seek to entrench an HR philosophy with commensurate improvements in the HR practises. The study limitations include a relatively small sample and geographical scope.

scholarly journals A Panel Data Approach to the Measurement of Health Technical Efficiency of Sub-Saharan Africa

2015 ◽  
Vol 18 (1) ◽  
pp. 1-15 ◽  
Author(s):  
Elham Torkian
Keyword(s):  
Panel Data ◽  
Environmental Factors ◽  
Life Expectancy ◽  
Technical Efficiency ◽  
Fixed Effects ◽  
Sub Saharan Africa ◽  
Stochastic Production Frontier ◽  
Life Expectancy At Birth ◽  
Sub Saharan ◽  
The Impact

Abstract This study investigates technical efficiency of health production function in Sub-Saharan Africa. For this purpose, a stochastic production frontier model is estimated using fixed-effects panel data method over the period of 2000-2007. More specifically the impact of economic, social, and environmental factors in determining life expectancy at birth, as the dependent variable, is measured and evaluated. Overall, the results justify the important role of policymakers, who their proactive approaches should be given to activities that go beyond the health system to influence the main determinants of health i.e. socioeconomic and environmental factors in preventing infectious diseases, improving life expectancy and aid populations to access available resources.

scholarly journals Efficiency Impact of the Communal Land Distribution Program in Northern Ethiopia

2020 ◽  
Vol 12 (11) ◽  
pp. 4436
Author(s):  
Shunji Oniki ◽  
Melaku Berhe ◽  
Koichi Takenaka
Keyword(s):  
Technical Efficiency ◽  
Tree Planting ◽  
Sub Saharan Africa ◽  
Farm Size ◽  
Northern Ethiopia ◽  
Land Distribution ◽  
Farm Production ◽  
Communal Land ◽  
Sub Saharan ◽  
The Impact

A rapid increase in population in sub-Saharan Africa has caused a decrease in farm size, an increase in the number of landless farmers, and soil erosion in communal forests due to increasing utilization. Ethiopia has addressed this problem by introducing an epoch-making privatization policy for the allocation of communal land to landless farmers. This policy promotes the economic utilization of the communal land while protecting natural resources. Hitherto, few studies have evaluated the impact of the policy. We evaluate the effect of the communal land distribution policy for tree-planting using technical efficiency of farm production by estimating a stochastic production function model in the Tigray region of Ethiopia. We compare the technical efficiencies of farm production between both participating and nonparticipating farms in the program using a quasi-experimental method. The results reveal the improvement of technical efficiency through communal land distribution. Therefore, program activities could increase farm incomes while maintaining land conservation. Thus, the allocation of communal land promotes sustainable land utilization in the mountainous areas of sub-Saharan Africa.

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